3 Energy Stocks That Are Easy to Buy for $1,000 Right Now

The US is about to enter an unprecedented period of electricity demand. After growing slightly over the past 20 years, forecasters expect the country’s electricity demand to rise over the next decade. growing more than 10 times faster than the previous 10 years. Several catalysts will contribute to this surge, including electrification heating and transport sectors, electric vehicles and artificial intelligence data centers.

Natural gas will play a critical role in supporting expected growth in electricity demand. Forecasters estimate that the country will consume an additional 20 billion cubic feet of gas per day (Bcf/d) by 2030, up from 108 Bcf/d last year, and that does not include a 10 Bcf/d increase in gas demand feet per day. from data centers. This forecast promises very much well for natural gas infrastructure stocks Kinder Morgan (KMI -0.28%), Williams (VMB 0.17%)And Targhee Resources (TRGP -0.36%). They look like a hassle-free purchase. right now for those who have around $1000 to invest.

The undisputed leader in gas infrastructure

Kinder Morgan operates the nation’s largest natural gas transportation network. It operates 66,000 miles pipelines what transport more than 40% of gas production in the country. It also owns 15% of the country’s natural gas storage capacity. Approximately 64% of the company’s cash flow comes from natural gas.

Company currently $5.1 billion worth of expansion projects are underway, including approximately $4.3 billion for new gas infrastructure. The largest project is a US$1.7 billion investment to expand the pipeline system to supply an additional 1.2 billion cubic meters. ft of gas per day to Southeast Asian markets, due to come online by the end of 2028. Kinder Morgan has many more potential projects in the pipeline, fueled by the richest opportunity he’s ever seen to expand his network.

Kinder Morgan development projects should give him fuel increase your cash flow and dividends. The pipeline giant’s yield currently exceeds 4%. At this rate, a $1,000 investment could turn into more than $40 in annual dividend income.

Many projects under development

Williams is a leader in gas infrastructure. It operates more than 33,000 miles of pipelines across the United States, supplying about a third of the nation’s gas needs. Most notable is Transco, the largest natural gas pipeline in the country by volume.

The company has long list of gas infrastructure projects implemented on its platform. They should be online before the end of the decade, providing many visibility of your ability to increase your income. Williams expects to grow its earnings by 5% to 7% annually over the long term. which should support similar growth rates in more than 3% yield dividends.

Williams has a large portfolio of projects beyond those it is currently developing. It could invest more than $10 billion in 30 potential projects that could come online between 2026 and 2032. time frame. Securing these projects would give the company more fuel to increase revenue and dividends in the future.

High-octane dividend growth ahead

Targa Resources is a leading midstream infrastructure company. Has assets for the collection and processing of natural gas. natural pipelines for gas-liquid products and fractionation plants, as well as opportunities for export of liquefied petroleum gas. Targa has the largest gas gathering and processing position in the Permian Basin. which world class oil and gas resource.

The midsize energy company has several expansion projects, including six more natural gas processing plants in the Permian that are expected to come online before 2026. These projects will allow it to participate in the growing production volumes in the region. The company also has several other projects underway or in development to drive additional growth beyond this year.

Targa Resources expects to return between 40% and 50% of its growing cash flows to investors over the next few years. He expects yields to surge by 1.5%, with a target of 33% growth in 2025 and strong annual growth thereafter. Targa is also expecting buy back shares opportunistically.

Cashing in on growing demand for gas

Expected growth in electricity demand over the next decade should support sustained growth in natural gas demand. This gives gas infrastructure companies more options to expand their systems. Kinder Morgan, Williams and Targa Resources are leaders in the sector, which puts them in excellent position to grow their earnings and dividends at attractive rates going forward, which should drive their earnings and dividends to grow at attractive rates going forward. strong result income for its investors.

Matt DiLallo has positions at Kinder Morgan. The Motley Fool has a position and recommends Kinder Morgan. The Motley Fool has a disclosure policy.